Lion joins Parmalat in milk war against New Zealand rival A2 Milk

Lion - the owner of the Pura and Dairy Farmers brands in Australia - has joined another milk giant in Parmalat and declared war on fast-growing New Zealand rival A2 Milk.

Australian consumers have warmed to A2 Milk, which contains only the A2 beta-casein protein.

Many people who cannot digest regular milk - which contains both the A1 and A2 proteins - say they can drink A2 without digestive issues.

The science surrounding A2 Milk has never been conclusive, but the word-of-mouth support from consumers has been overwhelming. It has won more than 5 per cent of Australia's fresh milk market from its rivals since launching in 2007.

To fight back, Lion relaunched the Pura brand in South Australia last month, with labels that say: ''Naturally contains A2 protein.''

According to Lion's website: ''We can now let South Australian consumers know that Pura milk naturally contains A2 protein, as well as A1 protein.''

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Fairfax Media believes Lion is testing the new labelling before a relaunch in Victoria and NSW.

A2 Milk executives accused Lion of trying to confuse consumers. ''It's not like we add A2 protein to the milk, the fact is we exclude all [A1] so people with digestive issues get the benefit,'' said A2 Australia chief executive Peter Nathan.